CentralNic spends $6.5 million on traffic network | Domain Incite
CentralNic this morning said it has paid $6.5 million to acquire “a publishing network of revenue generating websites”.
The company, which is seeing an increasingly large chunk of its revenue coming from domain monetization, said the network generates $2 million in annual revenue and $1.5 million in earnings.
The seller is White & Case, a 120-year-old international law firm, not exactly the kind of company you’d expect to own a bunch of random monetized domains.
Neither the size of the network nor the means of monetization were disclosed.
CentralNic said the network was already a customer for roughly half of its sites, so the acquisition will add about $1 million to revenue and $1.5 million to earnings, reducing annual cost of revenue by about $500,000.
While the company is best know for selling domain names, following recent acquisitions revenue from its fast-growing “online marketing” segment outpaced its traditional revenue sources, bringing in $96.4 million in the first half compared to $78.3 million in it two domain-related segments.